Update 2/1/20: Alliant has not sent out a letter to existing cardholders confirming the upcoming change. The limit is $10,000 per month which is $250 max for most people, and $300 max for those who are in their first year. (This is unlike my speculation in a prior post that the $250 limit would apply for to those in their first year as well.) ht reader Jeffrey
Original Post:
The Alliant Visa Signature 2.5% cashback card will introduce a limit of $10,000 in purchases per billing cycle which can earn cash back. The limit will begin on March 14th.
You can see the change when you login and attempt to apply for the card. The way it’s being presented makes me believe the change will affect existing users as well; we’ll find out for certain in the coming weeks, presumably.
Some people put all of their non-bonus spend on this card due to its top-of-the-line 2.5% cashback rate (or 3% during the first year). Even those who aren’t ‘heavy hitters’ might have months with a large purchase which goes above $10k, e.g. a high tax bill.
With the new cap, the most you can gain by having the Alliant card over a different, uncapped 2% card is $50 per month ($100 per month for the first year). There’s also a $99 annual fee, bringing the total possible net per year on the card at $501 more than a different 2% card ($1,101 for the first year). So this change is obviously a big negative.
Still, the extra .5% will continue to make the card worthwhile for a lot of people. And the 3% rate the first year can still be a good deal as well, despite the cap.
Thanks to reader Ori G for sending in this tip.
Related: Alliant Credit Cards No Longer Earn Rewards with Plastiq
